Commercial Vehicle & Off-highway Radar Market Trends [2031]

Report Description

Commercial Vehicle & Off-highway Radar Market Outlook 2031

The global commercial vehicle & off-highway radar market size was valued at USD 247.94 Million in 2022 and is likely to reach USD 2176.72 Million by 2031, expanding at a CAGR of 27.3% during 2023 – 2031. The market growth is attributed to rising adoption of off-highway vehicles.

Rising adoption of off-highway vehicles for construction and mining purposes is estimated to drive the market. Off-highway vehicles need radars for object detection and collision avoidance. Radars also provide information about the distance, position, or relative velocity of detected targets or objects, which increases their adoption in off-highway vehicles.

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Growing transportation and logistics services and increasing construction activities across the globe are boosting the demand for commercial vehicles & off-highway radar. Radars are installed in commercial and off-highway vehicles to detect and indicate how far away an object is. Radars are used to provide several safety features in vehicles such as adaptive cruise control, collision avoidance, autonomous emergency braking, intelligent park assists, and blind spot detection, which enchases its adoption in commercial and off-highway vehicles.

The COVID-19 pandemic hampered the demand for commercial vehicles & off-highway radar. The rise in COVID-19 infection dampened the sales and production of all new commercial vehicles. This significantly impeded the market, as radars are installed in commercial vehicles to detect objects and people quickly, accurately, and reliably.

Moreover, a sharp decline was seen in construction activities, which restricted the demand for commercial & off-highway vehicles, as these vehicles are heavily used in construction activities for the transportation of building materials, digging holes, landscaping, breaking up asphalt, and paving roads. For instance,

• According to the Royal Institution of Chartered Surveyors, 25% of construction projects across the globe were halted in the second quarter of 2020.

Impact of Artificial Intelligence (AI) on Commercial Vehicle & Off-highway Radar

The growing technological advancements in the automotive industry and the introduction of artificial intelligence create an immense opportunity in the market. AI-powered automotive radar has huge bandwidth and high frequency, which provide robust range detection even in fog, smoke, and dust.

AI-enabled radars in commercial and off-highway vehicles provide precise and reliable data as well as alert drivers if a vehicle approaches from behind. AI-powered radar in these vehicles enhances safety and security by utilizing encryption, authentication, and verification methods.

Commercial Vehicle & Off-highway Radar Market Dynamics

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Major Drivers

Increasing demand for commercial vehicles is expected to drive the market during the forecast period. Radar sensors are installed in commercial vehicles to detect pedestrians or obstacles before they are visible to the driver and deploy automatic emergency braking. It also detects traffic changes from farther distances and alerts drivers. Therefore, rising demand for commercial vehicles is propelling the market. For instance, 24.1 million commercial vehicles were sold in 2022.

Rising incidence of road accidents is projected to boost the demand for commercial vehicles & off-highway radar in the coming years. Radars are placed in commercial vehicles to avoid and reduce the number of accidents through warning signals and automated safety functions such as adaptive cruise control (ACC), blind spot detection (BSD), and forward collision warning systems. Thus, growing incidence of road accidents of commercial vehicles is enhancing the market. For instance,

• According to the National Safety Council, 5,700 large trucks were involved in a fatal crash in the US in 2021, an 18% increase from 2020.

Existing Restraints

High cost associated with radars is expected to restrict the market during the forecast period. Radars are expensive, as they include complex technologies and antennas to detect the position of the oncoming vehicle, along with its speed and trajectory. Moreover, signal interference and the inability to distinguish multiple targets linked with radars are expected to hamper the growth of the market in the coming years.

Emerging Opportunities

Increasing adoption of autonomous commercial vehicles creates an immense opportunity in the market. Autonomous commercial vehicles are equipped with radar sensors to ensure high resolution in obstacle detection as well as centimeter accuracy in position and movement determination.

Moreover, key companies in the market are heavily investing in R&D activities to develop and introduce reverse blind spot monitoring radar for commercial trucks, buses, heavy-duty mining, and construction equipment, which creates a lucrative opportunity in the market. For instance,

• On October 19, 2023, Sensata Technologies, Inc., a key industrial technology company that develops sensors and sensor-based solutions, announced the launch of PreView Sentry 79 take-off and reverse blind spot monitoring radar. PreView Sentry 79 is an advanced 79 GHz front and rear detection radar sensor designed to enhance driver awareness and minimize the risk of blind spot-related accidents.

Scope of the Commercial Vehicle & Off-highway Radar Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Commercial Vehicle & Off-highway Radar Market Segment Insights

Application Segment Analysis

Based on application, the commercial vehicle & off-highway radar market is categorized into adaptive cruise control (ACC), blind spot detection (BSD), forward collision warning system, intelligent park assist, and autonomous emergency braking (AEB). The adaptive cruise control (ACC) segment registered significant growth in 2022, due to technological advancements in sensor technology and increasing demand for automotive safety systems.

A radar sensor is the core element of adaptive cruise control, which permanently monitors the road ahead and maintains the speed set by the driver. ACC also reduces the chances of collisions through speed control and lowers stress for drivers while driving, which increases its adoption in commercial and off-highway vehicles.

The blind spot detection segment is anticipated to expand at a robust pace during the assessment period, owing to increasing adoption of autonomous and electric vehicles as well as its potential to improve vehicle safety. Blind spot detection system uses radar sensors to alert drivers when another vehicle approaches the blind spot of the vehicle. It also helps drivers in the lane adjacent by monitoring the surroundings, which enhances its demand in commercial vehicles.

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Frequency Segment Analysis

In terms of frequency, the global market is segregated into 24 GHz and 77-82 GHz. The 77-82 GHz segment held a large share of the market in 2022, due to its ability to provide improved velocity resolution and accuracy. 77-81 GHz frequency is suitable for high-performance radar applications, making it useful for advanced safety features such as lane departure warning, forward collision warning, and pedestrian detection. 77-81 GHz frequency is widely used to provide safety features in commercial and off-highway, which enhances their demand.

Vehicle Segment Analysis

Based on vehicle, the commercial vehicle & off-highway radar market is bifurcated into commercial vehicle and off-highway vehicle. The commercial vehicle segment dominated the market in 2022 and is expected to continue its dominance throughout the forecast period, owing to the growing logistics and e-commerce industries.

Radars are widely installed in commercial vehicles to reliably detect objects in all weather conditions. Radar sensors help truck drivers smoothly back up and park their vehicles at the perfect distance from the dock, enabling highly efficient loading or unloading. Moreover, major companies in the market are launching ADAS and collision mitigation system features in commercial vehicles, which enhances the demand for radars in commercial vehicles. For instance,

• On September 5, 2022, Tata Motors, an India-based multinational automotive company, announced the launch of CNG-powered trucks with an advanced driver assistance system (ADAS), collision mitigation system, lane departure warning system, and driver monitoring system.

Regional Outlook

In terms of region, the commercial vehicle & off-highway radar market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major share of the market in 2022, due to the technologically advanced automotive industry and the presence of established market players such as Ford Motor Company, Texas Instruments Incorporated, and Analog Devices, Inc.

Moreover, increasing production of commercial vehicles in the region propels the market, as radars are installed in commercial vehicles to detect obstacles and warn drivers. For instance,

• As per a report, 13.3 million commercial vehicles were produced in North America in 2022, the leading region in producing commercial vehicles.

The market in Asia Pacific is projected to expand at a high CAGR in the coming years, owing to the increasing infrastructure development and growing e-commerce industry. Moreover, rising logistics and supply chain activity in the region is estimated to boost the demand for commercial vehicles, which enhances the market growth. For instance, 7.06 million commercial vehicles were sold in the region in 2022.

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